Dollar up against peers ahead of US inflation data

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Dollar up against peers ahead of US inflation data

NIONDI, USA, 10 November - The dollar was up against major peers on Wednesday after weakening in the past three days, with investors taking little risk ahead of U.S. inflation data which could reveal some light on how fast the Federal Reserve might raise interest rates.

A poll of economists predicted the US consumer price index to come in at an annualized 4.3% against the US Federal Reserve's annual 2% inflation target later on Wednesday.

The Fed last week said its belief that current high inflation is transitory, but many investors fear that underestimating the rise in prices could be a costly policy mistake.

A lot is resting on that inflation being transitory. The multi- trillion dollar question for 2022 will be a big question for Deutsche Bank strategist Jim Reid, who said in his morning note to clients.

The data showed on Tuesday that U.S. producer prices increased solidly in October, driven by surging costs for gasoline and motor vehicle retailing, suggesting that high inflation could continue.

The dollar index, which measures the dollar against six rivals, rose 0.29% to 94.146 at 0850 INR, after falling from a more than one-year peak of 94.634, reached on Friday.

Against Japan"s yen the greenback came off lows last seen since Oct. 11 and rose 0.18% to 113.080 yen.

Last week, after the Bank of England's surprise decision to keep rates unchanged, sterling retreated 0.18% to $1.3535 but stood well up Friday's more than one-month low of $1.3425.

The search for safer assets was underpinned by fears of potential contagion from China's property market woes.

China's Evergrande faces a deadline on Wednesday to pay an offshore bond, and Kaisa Group pleaded on Tuesday for help to pay loans, workers and suppliers.

The Aussie briefly fell to a 0.07% fall, but slowly limited its losses to a 0.07% fall.

In cryptocurrencies, the price of bitcoin hovered below the all-time high of $68,564. Last changing hands were around $66,670 on Tuesday.

Ether traded at $4,715. The record peak of $4,842 was Tuesday's record high of 30 at the beginning of the day.